Required:-

1. Based on information given at (i) to (v), prepare the note on Property, Plant and Equipment.
2. For each items (vi) to (xi), discuss briefly the accounting treatment / calculation in accordance to Malaysia Financial Reporting Standards (MFRS). Quote the relevant MFRS.
3. Prepare the Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2020.
4. Prepare the Statement of Financial Position as at 30 June 2020.
5. By using the following Statement of Financial Position as at 30 June 2019, prepare a statement of cash flows for the year to 30 June 2020 in accordance with the requirements of MFRS 107, Statement of Cash Flows, using the indirect method. (Show all relevant workings)
    
    
    
    

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DoraeMon Bhd is involved in the manufacturing, packaging and marketing of electronic products in Sungai Buloh, Selangor. Below is the trial balance of Dorae Mon Bhd for the year ended 30 June 2020: Revenue Cost of Sale Interim Dividend paid Administrative expenses Distribution expenses Finance Cost Income Tax payable. Freehold land at valuation as at 1 July 2019 Building at cost as at 1 July 2019 Plant and machinery at cost as at 1 July 2019 Accumulated depreciation as at 1 July 2019 Building Plant and machinery Investment property at fair value as at 1 July 2019 Development cost Investment Ordinary share capital Retained earnings as at 1 July 2019 Asset revaluation reserve as at 1 July 2019 5% Debentures Trade receivables and payables Deferred tax Cash and bank Inventories Income taxes paid Total 1 Additional information: 0 () (0) Debit (RM'000) 188,300 20,000 41,200 1,500 824 25,000 7,000 4,819 2,738 77,000 10,000 BAC306/03 6,700 48,000 6,440 1,000 440,521 Credit (RM'000) 279,000 880 700 550 100,000 12,511 18,000 20,000 5,500 3,380 440.521 The company decided to adopt the revaluation model for building and the fair value on 1 July 2019 is RM7, 200,000. The remaining useful life of the building as at that date is 20 years. The fair value of the land as at 30 June 2020 is RM25, 500,000. Both revaluations have yet to be recorded in the accounts as at year end. In addition, the company wishes to make annual transfers to retained earnings for any revaluation surplus made as the asset is being used and depreciated. A new equipment costing RM780, 000 was purchased on 1 July 2019 to replace the old machinery that was purchased on 1 July 2016 at a cost of RM420, 000. The old equipment was disposed for RM200, 000. None of these transactions have been recorded in the accounts at year end. Plant and machinery are depreciated over their useful life of 10 years. All depreciation charges are included in administrative expenses. The policy of the company is to depreciate all its assets using the straight line method, giving full year's depreciation in the year of purchase and none in the year of disposal. DoraeMon Bhd is involved in the manufacturing, packaging and marketing of electronic products in Sungai Buloh, Selangor. Below is the trial balance of Dorae Mon Bhd for the year ended 30 June 2020: Revenue Cost of Sale Interim Dividend paid Administrative expenses Distribution expenses Finance Cost Income Tax payable. Freehold land at valuation as at 1 July 2019 Building at cost as at 1 July 2019 Plant and machinery at cost as at 1 July 2019 Accumulated depreciation as at 1 July 2019 Building Plant and machinery Investment property at fair value as at 1 July 2019 Development cost Investment Ordinary share capital Retained earnings as at 1 July 2019 Asset revaluation reserve as at 1 July 2019 5% Debentures Trade receivables and payables Deferred tax Cash and bank Inventories Income taxes paid Total 1 Additional information: 0 () (0) Debit (RM'000) 188,300 20,000 41,200 1,500 824 25,000 7,000 4,819 2,738 77,000 10,000 BAC306/03 6,700 48,000 6,440 1,000 440,521 Credit (RM'000) 279,000 880 700 550 100,000 12,511 18,000 20,000 5,500 3,380 440.521 The company decided to adopt the revaluation model for building and the fair value on 1 July 2019 is RM7, 200,000. The remaining useful life of the building as at that date is 20 years. The fair value of the land as at 30 June 2020 is RM25, 500,000. Both revaluations have yet to be recorded in the accounts as at year end. In addition, the company wishes to make annual transfers to retained earnings for any revaluation surplus made as the asset is being used and depreciated. A new equipment costing RM780, 000 was purchased on 1 July 2019 to replace the old machinery that was purchased on 1 July 2016 at a cost of RM420, 000. The old equipment was disposed for RM200, 000. None of these transactions have been recorded in the accounts at year end. Plant and machinery are depreciated over their useful life of 10 years. All depreciation charges are included in administrative expenses. The policy of the company is to depreciate all its assets using the straight line method, giving full year's depreciation in the year of purchase and none in the year of disposal.

Answer rating: 100% (QA)

a Based on information given at i to v prepare the note on Property Plant and Equipment Property plant and equipment Freehold land and buildings The freehold land and buildings held by the company as ... View the full answer